George Osborne's plans to disband the Financial Services Authority if the Conservatives are elected are undermining the body's attempt to push for regulatory reform in Europe and the rest of the world, its outgoing chief executive said yesterday.

After a series of convictions for insider dealing, Sants said this was the "key year" to demonstrate the FSA was serious on cracking down on such City crimes. There would be a "significant" increase in criminal cases and enforcement actions, he said, reiterating his view that the amount of insider dealing in the City was "unacceptable".

"The offsetting factor is that the FSA is a rewarding job ... it's a worthwhile job," Sants said.

Around About 2,000 of FSA's employees would transfer to the Bank of England if the Conservatives were to win the election and enact their regulatory plan – and in the process be given a final salary pension scheme enjoyed by public sector workers.

Sants said that the uncertainty created by the Conservatives at this time of "significant change" was "not helpful to secure maximum influence over the debate" surrounding regulatory reform.